American Cannabis Company Inc (OTCMKTS:AMMJ) is a penny play in the B2B wing of the cannabis space. AMMJ stock has repeated reaffirmed a trading range that amounts to a lateral consolidation of its massive gains last Fall. While we haven’t seen new strength of late, we have some signs of key support. That action has been bolstered by recent reports, including the company’s announcement that it has secured two new clients in the state of Pennsylvania, bringing the total number of Pennsylvania clients who have engaged the Company to five.
As noted in their recent release, none of the Company’s Pennsylvania clients are in competition with each other, as they operate in distinct regions of the state. Of the two new clients mentioned in this release, one client is applying for a retail dispensing license, and is retaining the Company to advise them in responding to state application materials, developing standard operating procedures for their proposed retail operations, and, design services for their proposed dispensary location. The second new Pennsylvania client is applying for licensure in cannabis cultivation, cannabis product manufacturing, and retail dispensing. The Company will assist this client in various strategic planning initiatives, as well as with the completion of their state application.
American Cannabis Company Inc (OTCMKTS:AMMJ) promulgates itself as a company that provides solutions for businesses operating in the cannabis industry in the United States and Canada.
It provides advisory and consulting services, including commercial cannabis business planning services, cannabis business license applications, cultivation build-out consulting, cannabis regulatory compliance, compliance audit services, cannabis business growth strategies, and cannabis business monitoring services.
The company also sells products and equipment used in the cultivation, processing, transportation, or retail sale of cannabis. Its product offerings include The Satchel, a pouch-like case designed as a child-proof exit package solution for the regulated cannabis industry; SoHum Living Soil, a just-add-water soil; High Density Racking System, which ensures the proper use of space; The Cultivation Cube, a self-contained and scalable cultivation system; and other products for cultivation operations, medicinal and recreational cannabis dispensary operations, and infused-products.
The company is headquartered in Denver, Colorado.
According to company materials, “American Cannabis Company, Inc. offers end-to-end solutions to existing and aspiring participants in the cannabis industry. We utilize our industry expertise to provide business planning and market assessment services, assist state licensing procurement, create business infrastructure and operational best practices. American Cannabis Company also developed and owns a portfolio of branded products including: The Satchel™, SoHum Living Soils™, The Cultivation Cube™ and The High Density Cultivation System™. We also design and provide other industry specific custom product solutions. The building and development of our brands and product suite is based on our Geoponics Philosophy, “the art and science of agriculture in soil.””
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As noted in their most recent press release, AMMJ expects to be able to truly leverage its new Pennsylvania clientele to secure additional revenues through long-term consulting agreements and potential sales of ancillary products.
Terry Buffalo, the Company’s Principal Executive Officer, commented: “We are very happy to welcome in these two new clients. Pennsylvania is stacking up to be a very competitive market, and we at ACC seek to provide our years of industry knowledge and expertise in effort to give our clients a competitive advantage. Our company is on the forefront of this industry, and we aim to continue in the rapid expansion of our brand.”
We’ve witnessed largely sideways action in shares over the past week, and over the past 3 months. That said, the situation may be worth watching. AMMJ has evidenced sudden upward volatility on many prior occasions. Furthermore, the name has registered increased average transaction volume recently, with the past month seeing 11% beyond what we have been seeing over the larger time frame.
Traders should note this as important given the stock’s tight trading float of under 26M shares. Traders should not overlook this combination, as ramping trading activity can overwhelm available supply in a stock with this type of small float, leading to an upward burst in prices. Since we last covered the name, the stock has moved 9.6% higher.
Currently trading at a market capitalization of $40M, AMMJ has virtually no cash on the books, which must be weighed relative to about $150K in total current liabilities. One should also note that debt has been growing over recent quarters. AMMJ is pulling in trailing 12-month revenues of $2.8M. However, the company is seeing declines on the top line on a quarterly y/y basis, with revenues falling at -31%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. For continuing coverage on shares of $AMMJ stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!